PXP Energy trims Q3 losses amid lower costs

PANGILINAN-LED PXP Energy Corp. trimmed its third-quarter (Q3) attributable net loss to P7.54 million from P10.24 million a year ago.

The upstream oil and gas firm’s petroleum revenues for the period declined by 7.7% to P21.86 million from P23.68 million in the previous year, PXP said in a regulatory filing on Thursday.

Costs and expenses fell 12.8% to P29.13 million from P33.4 million after recording lower petroleum production costs and general and administrative expenses.

For the nine months ending in September, the company cut its attributable net loss to P16.7 million from P22.9 million a year ago.

PXP also reported a lower core net loss at P17.8 million from P23.9 million previously. This was attributed to “slightly higher average crude oil price and volume lifted from SC (Service Contract) 14C-1 Galoc operations, a reduction in overhead, and lower net interest expense.”

SC 14C-1 is a block containing the producing Galoc Oil Field situated offshore Northwest Palawan. The oil field has already yielded about 24.2 million barrels (bbls) since production started in October 2008, according to PXP.

From January to September, consolidated petroleum revenues climbed by 2.8% to P64.8 million, following a slight increase in the average crude oil price to $81.2 per bbl from $80.5 per bbl, on top of higher output sold in SC 14C-1 Galoc at 478,999 bbls.

Consolidated costs and expenses went down by 4.8% to P78.2 million due to a significant reduction in recurring overhead and lower net interest expenses. However, this was slightly offset by higher petroleum production costs. 

Meanwhile, PXP is hoping that its applications for two predetermined areas (PDAs) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) that were offered by the government will be awarded “soon.”

A joint venture (JV) comprising PXP, The Philodrill Corp., Sunda Energy Plc of the United Kingdom, and Operator Triangle Energy (Global) Limited of Australia submitted the bid documents for petroleum exploration in two PDAs situated in the Sulu Sea Basin.

The Sulu Sea blocks were part of the three blocks offered under the 1^st BARMM Conventional Energy Bid Round launched by the Department of Energy (DoE) and the Ministry of Environment, Natural Resources, and Energy.

“The JV was the sole bidder for the two blocks, and its applications were found to be complete, thus qualifying them for further substantive legal, financial, and technical evaluation,” the company said.

Meanwhile, PXP said that feasibility studies on SC 40’s Dalingding-2 Prospect are currently ongoing.

SC 40, or the North Cebu Block, is located in the Visayan Basin, which the DoE considers as among the “most prospective in the country” next to the producing Northwest Palawan Basin.

The company also said that PXP and Forum Energy Limited remain committed to both SC 72 and SC 75 despite the extended force majeure on both blocks.

PXP holds a 50% operating interest in SC 75 located in Northwest Palawan. Forum Energy, through its wholly owned subsidiary Forum (GSEC 101) Limited, has a 70% operating interest in SC 72 Recto Bank in offshore West Palawan.

“PXP will continue to assess and study other oil and gas projects within the Philippines,” the company said. — Sheldeen Joy Talavera